Hotels push up rates but not occupancy

01 March 2005 by
Hotels push up rates but not occupancy

Early results for the hotel sector in 2005 show rises in room rates and yields, but static occupancy levels.

Preliminary results published this week by accountancy firm PKF show that UK hoteliers need to improve occupancy rates. London hotels reported a 0.6 percentage-point dip in January to 65.4%, compared with the same month last year.

Outside London it was a similar story, with January rates down 0.2 percentage points to 58.1%.

But it was not all bad news: average room rates in London rose 6.1% to £97.67, increasing yield by 5.2% to £63.88.

Nationally room rates were up 4.1% to £63.16, taking average yields up by 3.7% to £36.68.

Robert Barnard, partner for hotel consultancy services at PKF, said the increases in room rates and yield "bodes well".

However, he warned hoteliers to take measures to increase occupancy levels if they wanted to perform well this year.

by Emily Manson

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